Timmerman Ltd. purchased $1 million of 10- year bonds at face value (100) in 2015. The bonds

Question:

Timmerman Ltd. purchased $1 million of 10- year bonds at (100) in 2015. The bonds were trading at 105 (recall that a bond price in this case means that the bond trades at 105% of its value) on December 31, 2015.
(a) At what amount would the bonds be reported in the December 31, 2015, statement of financial position if management accounted for the bonds using the fair value through profit or loss model?
(b) How would any related interest revenue be reported?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...